The full purchase price of articles sold after manufacturing
or after having been made-to-order are taxable. The purchase price is the gross
value of all materials, labor, service, and profit included in the price
charged to the user or consumer.

Tangible personal property specifically produced by an
artist on commission, as an exclusive item, is considered a work of art and not
subject to sales tax because the artist is selling his/her service, not a
manufactured item of tangible personal property. However, the artist is subject
to the payment of sales/use tax on the materials necessary in the creation of
the work of art which was contracted or commissioned. NOTE: Any subsequent sale
of the original work of art or copies of that work of art are sales of tangible
personal property and are subject to sales tax.

EXAMPLE

XYZ Company, a public relations firm located in
Denver, commissions a Denver artist to draw a portrait of a star football
player. XYZ will have 5000 copies made to be sold to fans as posters. The
artist owes sales/use tax on the materials consumed in performance of his
commissioned work of art but does not charge XYZ sales tax on the original portrait.
However, XYZ is required to collect sales tax on the retail price of the
posters sold and delivered in Denver.

THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE
RELEVANT DENVER TAX LAW FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT
INTENDED FOR LEGAL PURPOSES TO BE SUBSTITUTED FOR THE FULL TEXT OF THE DRMC AND
APPLICABLE RULES AND REGULATIONS.